October 25, 1996
(Environment and Labour)

Province brings in deposit-refund system for beverage containers

Kevin Aylward, Minister for Environment and Labour, and Charles J. Furey, Minister of Industry, Trade and Technology, today unfolded the province's plans to implement a deposit-refund system for beverage containers, starting January 15, 1997. From that date, consumers will pay a deposit of six cents when purchasing all beverages, exclusive of milk, and receive three cents when the container is returned to a collection depot. Liquor will have a deposit of 20 cents and a refund of 10 cents.

Government has established a Multi-Materials Stewardship Board, consisting of representatives of government, industry and non-profit sectors to implement the Deposit Refund System as the first step in the Multi-Materials Stewardship Program. The system will operate on a fully self-financing basis, with no cost whatsoever to government.

Once the Deposit Refund System is operational, the board will target all packaging waste that is currently going to landfills around the province, such as fountain drink containers, other kinds of packaging, cardboard and tires. The Canadian Soft Drink Association has entered into a partnership agreement with the Stewardship Board to establish a local, non-profit organization to implement and manage the collection system for beverage containers on a fully self financing basis.

At a news conference held at Mill Lane Enterprises, one of two Evergreen Recycling Depots in St. John's, Mr. Aylward said the new system will go a long way toward reducing litter and the amount of waste, that is currently going to land fill sites around the province.

"The time has come for us to take effective measures to get beverage containers out of the land fill sites and off the streets and highways of this province. The deposit-refund system will be very effective at doing just that," he said. The minister said the deposit-refund system gets the beverage containers out of the waste stream because it puts an economic value on the containers and turns "garbage" into money.

"In other provinces where deposit-refund systems are in place, people are returning as much as 80 to 90 per cent of beverage containers in circulation and diverting them from the waste stream. That is because they are just too valuable to throw away," the minister continued.

Mr. Furey, agreed and said that with the implementation of the system comes an important opportunity for economic development. "The Deposit-Refund System means the establishment of collection depots across the province, as well as a fairly sophisticated electronic encoding and tracking system for the containers. Besides generating job opportunities for depot operators, this new system also means potential business opportunities that arise out of the utilization of recovered materials," he said.

This past summer, government met with representatives of the various stakeholders to the program, such as wholesalers, distributors, recyclers, non-profit groups, to discuss the system's impact on their operations and ways in which they may participate in its delivery. As well, a statistically significant opinion survey was conducted in June, 1996, in which 96 per cent of all respondents indicated that "all things considered, they would support a Deposit Refund System."

Contact: Teddy Ryan, Director of Communications, Department of Environment and Labour, (709) 729-2575; or John Doody, Director of Communications, Department of Industry, Trade and Technology, (709) 729-0050.